THE PROPOSALS

Evening Star, Issue 20917, 7 October 1931, Page 6

THE PROPOSALS

SUMMARY OF BUDGETARY CRISIS Tlie proposals to meet the additional burden of £1,595,000 are therefore as follows: Economies, £400,000. Draw, on reserves, £350,000. Customs taxation, £240,000. Income tax to cover laud tax adjustment (£320,000), and additional £230,000._ Total, £550,000. Reduction in amount provided in main Budget for supplementary estimates and contingencies, £55,000. Total, £1,505,000. BUDGET ESTIMATES. With the adjustments I have outlined the revenue estimates for the year, shown in the main Budget at £24,940,000, must now be recast as follows: Customs, £6,750,000. Beer duty, £650,000. Film hire tax, £50,000. Motor vehicles duties and licenses, £1,760,000. Stamp and death duties, £2,§90,000. Land tax, £625,000. Income tax, £4,935,000. Interest receipts; Railway capital, £930,000; Post Office, £535,000; public moneys, £745,000; public debt redemption fund, £730,000;_ total, £2,930,000. Miscellaneous: Post Office surplus, £1,090,000; from reserves, £1,490,000; other, £1,396,000; total, £3,976,000. Total, £24,666,000. The estimated expenditure of £24,763,781, as shown in the main Budget will be increased by £IOO,OOO for fertilisers and £75,000 for subsidies to hospital boards, and on the other hand reduced by £400,000 on account of economies; so that the Budget position for the year is now estimated to bo as follows: REVENUE £24,666,000 EXPENDITURE ... 24,540,000 Leaving £126,000 to provide for Supplementary Estimates and contingencies. LOAN EXPENDITURE. Nearly half the net expenditure of the Consolidated Fund consists of debt charges, and any further loan expenditure is a direct factor in the budgetary position. The fall in the national income and in the taxable capacity of the people has automatically increased the relative burden of the existing debt charges. BORROWING ABROAD MUST CEASE The sooner we can cease borrowing from abroad the better, and this remark applies equally to tho loan expenditure of local authorities as well as to Government expenditure. For this financial year no additional capital is being provided for State Advances, but repayments from existing advances are available for fresh advances. For public works the additional loan capital to be provided has been limited to approximately £4,750,000, which means that a curtailment of over 40, per cent, has been made in the raising of fresh capital. If State Advances are included, the curtailment is over 50 per cent, compared with the amount borrowed last financial year.